What happens if the Transfer Review Fee does not cover Bhc's out-of-pocket costs?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the standard Transfer Review Fee is $5,000. However, this fee may not be sufficient to cover all of Bhc's expenses associated with the transfer. If Bhc's out-of-pocket costs, including attorney's fees, exceed $5,000, the franchisee is responsible for paying the additional amount.
This means that while a franchisee can expect to pay at least $5,000 for the Transfer Review Fee, the actual cost could be higher depending on the complexity and legal work involved in the transfer process. It is important for franchisees to be aware of this potential for additional costs when considering a transfer.
Prospective franchisees should discuss with Bhc what factors might cause the Transfer Review Fee to exceed $5,000 and ask for an estimate of potential additional costs based on similar past transfers. Understanding these potential costs upfront can help franchisees better prepare for the financial implications of transferring their franchise.